In 8 years, India might attract $6 b from Canadian pension fund

As per reports after the long wait of almost five years, finally Mumbai would be setting up the Canada Pension Plan Investment Board in India.

While the reports further highlighted that for setting up the Canada Pension Plan Investment Board, the country has spent an amount of 2 billion (12,800 crore).

The sourced linked with the matter also claimed that although the fund would be owned by the government but the fund house would be operating as a private entity which would be designated to manage the new inflow of about C$5 billion per year which would be taken from about 1.9 crore employees and many other retirees from Canada.

The reports also highlighted that from last 10 years, the CPPI has successfully delivered the yearly returns of 8 per cent.

Giving more details about the retirement investment plans, the CPP investment board’s President and CEO, Mark D Wiseman said that in India the fund amount might sound very low but when the same amount is translated into the Canadian context, then the returns amount, even after amending for the inflation becomes 6.2 per cent.

“We want to put increasing amounts of our portfolio into growth markets,” Wiseman said. “At the moment our total emerging markets exposure is 7 to 8 per cent, and we could easily see that going to 15 [per cent] over the same period.”